Comcast Jumps After Broadband Growth Helps Profit Top Estimates

(Bloomberg) -- Comcast Corp. climbed in early trading after its focus on improving its internet service paid off in the third quarter, with the largest U.S. cable provider posting a big increase in broadband subscribers.

• The company added 363,000 internet subscribers in the period, a 70 percent increase from a year earlier. Comcast has had only one previous quarter in the past six with larger broadband customer gains.

Key Insights

• The growth should ease investor concern that broadband is slowing and shows why much of the company’s capital is going toward network upgrades. It’s now the biggest U.S. provider of gigabit speeds.
• The pay-TV business remains tough, with video subscribers shrinking as more U.S. customers go for cheaper options like AT&T’s DirecTV Now.
• The U.S. video losses are a reminder why Comcast is paying $39 billion for Sky Plc -- a pay-TV company in Europe, where cord-cutting isn’t so prevalent.

Market Reaction

• Comcast shares were up 4.5 percent in premarket trading Thursday. The stock had been down 15 percent this year before the results, compared with a decline of less than 1 percent for the S&P 500. Concerns that Comcast is paying too much for Sky have weighed on the stock.

Get More

• For more details on the results, click here.
• Read the statement here.

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